'Budget held nothing for us'

SMALL firms heaved a sigh of relief last week after Chancellor Gordon Brown refrained from adding to business's increasing tax burdens. Yet many growing firms felt they had been ignored in what was billed as a 'Budget for business'.

Some of the country's smallest firms will feel the most benefit from the Budget. Among the main changes announced were:

• Expanding the definition of a small or medium-sized so that more companies can take advantage of tax breaks.

• A series of measures to simplify VAT for businesses, including raising the registration threshold from £55,000 to £56,000 and extending the optional flat-rate scheme to companies with a turnover of up to £150,000.

• More businesses to enjoy a relaxation of penalties for late payments of VAT.

• Extending 100% tax allowances for investment in IT until 2004.

• Proposals to help small firms raise funds through new small business investment companies.

• Reforms to venture capital trusts and the Enterprise Investment Scheme to encourage further investment in growing companies.

• An extra 40 regulations and procedures identified for removal or reform, bringing the total to 500.

Garry Parker, head of policy at the Forum of Private Business, says: 'This was not a budget for business.

'It was lacklustre and none of business's main concerns, such as employers' liability insurance, were addressed.'

Graham Brown, managing director and co-founder of business support company the Aims Group, is unimpressed.

'There was nothing to help stimulate my business in this Budget,' he says. 'It was very disappointing.'

The 14-year-old company, based in Towcester, Northamptonshire, provides support to companies battling with health and safety and environmental regulations. It employs 180 and has a turnover of £11 million

Graham, 44, says: 'The recent increase in National Insurance will cost us an extra £35,000, which comes straight off the bottom line.

'At least the Chancellor did not add to the burden of taxes we are facing. If we were starting up and wanted to take on staff, we'd be in a lot of difficulty now. It's lucky that we are a growing business, but we're not being allowed to grow as much as we could.'